Understanding Restrictive Covenants in Real Estate: What You Need to Know
Hello ,
In a recent article, Attorney Brenton Begley discusses the impact of restrictive
covenants on real estate.
What You'll Discover:
Running with the Land
- Restrictive covenants are legal
obligations attached to the property itself, binding subsequent owners.
- Due diligence is essential for potential buyers to understand and comply with existing restrictions.
Impact on Property Use and Sale
- Restrictive covenants significantly limit property use, such as prohibiting commercial development.
- They can affect property values and marketability,
appealing to specific buyer demographics.
Expiration and Enforcement in North Carolina
- In North Carolina, most restrictive covenants expire after 30 years, except for those specifically for residential purposes.
- Residential use restrictions can continue indefinitely unless legally challenged or amended.
Navigating Restrictive Covenants
- Before purchasing property, conduct a full title search and review recorded covenants.
- Property owners considering development should ensure compliance with existing restrictions.
- Challenging or amending restrictive covenants may be possible but requires legal expertise.
